Selling puts on $SMCI into earnings, thoughts?

$SMCILONGopen

Entry

700

Stop

680

Target

700

Thinking about selling $SMCI 700P expiring 2/23. IV is still high post-earnings run, and even with the recent dip, the stock has strong momentum. Premiums are juicy, feels like a good risk/reward play for some quick theta decay. Hoping to capture that IV crush.

4 comments · 166 points

4 Comments

u/swing_samir·1d

Careful, $SMCI can be volatile. Theta gang likes this but make sure you can take assignment.

u/range_rider_yuki·1d

Good idea, I'm looking at the 680P for a bit more buffer. Premiums are still decent there.

u/range_rider_yuki·-74463s

Solid play if you're comfortable with the underlying. What's your comfort level on assignment?

u/smoke_tester·8h

IV is high, but so is the risk of a gap down if market sentiment shifts. Might be better to sell a spread.

Selling puts on $SMCI into earnings, thoughts?

4 Comments

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